Spanish IVA changes possible
News date: Tuesday, 01st of June, 2004
The Spanish Government is considering changes to the IVA
(value-added tax) charged on officially protected houses (VPO). At the same time
the underlying price of a VPO would be increased in order to make it more
attractive for private companies to build these homes.
María Antonia Trujillo, the Housing Minister, has criticised fiscal treatment of housing over the last few years. At present, her department is studying possible legislative changes so that Spanish practices are more in line with those of other EU countries. It is possible that the IVA on house purchase, now at 7%, could fall as low as 4% for first-time buyers. This fall would help offset rises in the basic price of the homes, called for by houses builders' representatives; the builders are actually asking for a rise of up to 25% in the basic prices.
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